MeyGen tidal project signs the UK’s largest marine energy lease
Atlantis, owner of the world’s largest planned tidal stream energy project, MeyGen, today announces that it has signed a 398MW, 25-year seabed lease with The Crown Estate.
The lease was secured after MeyGen satisfied the extensive development obligations contained within its five-year Agreement for Lease (“AfL”), which was signed in October 2010. It is the largest marine energy Lease to be awarded by The Crown Estate and is the first in The Pentland Firth and Orkney Waters region, Scotland.
Atlantis recently announced that it has agreed terms with a funding syndicate for a funding package for Phase 1A of the MeyGen project which will exceed £50 million. Construction is expected to commence in Q4 2014 with first power to the grid and revenues being earned in H1 2016.
Dan Pearson, Chief Executive of MeyGen, commented:
“Signing the Lease with The Crown Estate is a significant achievement being the first of its kind and demonstrates how a commercial scale energy project can be designed, consented, engineered and funded within four years. This is the culmination of a talented and committed team working alongside stakeholders and governments who are determined to launch a new energy sector within Scotland and the UK. We are thankful to all who have helped us along the journey and look forward to delivering the first phase.”
Ronnie Quinn, Head of Ocean Energy, The Crown Estate said:
“Our commitment to invest in and agree a lease for the Meygen project continues our strategy to explore tidal stream energy on a commercial scale and its potential to help unlock the nation’s tidal energy resources over the long-term.”
For further information please contact:
- Atlantis: Ed Gill / Stephanie Blott on 0203 727 1000 or email firstname.lastname@example.org
- The Crown Estate: email@example.com; 020 7851 5242
Notes to Editors
- The completed MeyGen Project will include up to 269 turbines submerged on the seabed, generating enough energy for 175,000 homes in Scotland. The first phase (Phase 1) of the project will consist of 61 turbines / 86MW, and is expected to provide enough electricity for 42,000 homes in Scotland.
- Approximately 50 direct jobs will be created during Phase 1 of the project, with a further 70 indirect roles created throughout the supply chain.
- Phase 1A of the construction process will include the installation of 4 X 1.5 megawatt turbines offshore as well as the construction of all onshore infrastructure to support the project, including the onshore power conversion centre and grid connection.
- The funding syndicate for Phase 1A, amounting to approximately £50 million, includes: the Department of Energy & Climate Change, Scottish Enterprise via the Renewable Energy Investment Fund (delivered by the Scottish Investment Bank), Highlands and Islands Enterprise, The Crown Estate, and Atlantis Resources Ltd.
About Atlantis Resources Ltd
Atlantis Resources Limited is a vertically integrated turbine supplier and project developer in the tidal power industry. The Company holds equity positions in a diverse portfolio of tidal stream development projects.
Alongside its project development interests, the Group owns a portfolio of patents and patent applications relating to tidal power generation and sells tidal generation equipment and engineering services to third party developers as well as its own projects. The Company is revenue generating and also conducts industrial research and development and provides specialist consulting services globally.
About the Crown Estate
- The Crown Estate is an independent commercial business, established by Act of Parliament.
- 100% of its annual profits are returned to the Treasury for the benefit of the public finances.
- Over the last 10 years The Crown Estate has returned over £2.2bn to the Treasury. In the last financial year the value of the business rose to almost £10bn and its returns were £267m.
- Across its diverse portfolio, The Crown Estate’s approach remains consistent; driving sustainable returns and growth through an active approach to asset management and long term investment in four key sectors; Central London’s West End, prime regional retail, rural land and offshore wind.
- The Crown Estate’s portfolio is one of the most diverse anywhere in the world, including some of the UK’s most iconic assets:
- All of Regent Street and much of St James’s in central London;
- A UK top five portfolio of prime regional retail and leisure assets;
- One of the nation’s largest rural land portfolios;
- The entire UK seabed and around 50% of the foreshore.
- The Crown Estate is a successful, commercial enterprise, established as a market leader in its key sectors and known for a progressive, sustainable approach that creates long term value, beyond its financial return
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